Structure of the Organization is identified as one of the 39 subject areas (facets) of Asset Management as defined by the IAM and GFMAM.

Definition

The
formalized system that defines the functions and interelations betweens
roles, responsibilities, authorities, communcations, and rights.

Organizational
structure determines how the roles, power and responsibilities are
assigned, controlled, and coordinated, and how information flows
between the different levels of management.

The
manner in which an organization interacts with other organizations will depend
on its internal structure and its culture. Every organization has both a
structure and a culture -- they are like two sides of the same coin. An
organization cannot have a structure without also having a culture and cannot
have a culture without a structure.

Structure of the Organization –
This is a “formal” system of the functions and interrelations between the roles,
responsibilities, authorities, communications, and rights of the members of the
organization.

Culture of the Organization
– This is an “informal” system of shared assumptions, values, and beliefs,
which have a strong influence on how people behave inside the organization. Culture
expresses itself in how people dress, act, and perform their jobs.

Organizations
need structure in order to survive. Where structure is somewhat like “oxygen”,
culture can be thought of as the “atmosphere” in the organization. But we
seldom find pure oxygen in nature. It is often filled with different things to
make compounds and mixtures.

Listed below are the three primary types
of structures for organizations:

Functional – The organization is structured vertically
based on the specialized skills of its people. For example, maintenance skills,
financial skills, and administrative skills.

Divisional
–The organization is structured horizontally
to reflect the different products or services that it creates or the projects
that it undertakes.

Matrix – This is a hybrid of the functional
and divisional structures.

These horizontal (divisional) and
vertical (functional) dimensions are delivered through a 2nd set of
structures:

The pyramid
structure (power rests at the peak of the pyramid)

The
bicycle hub-and-spoke structure (power radiates out from the centre)

The silos
(power sits at the top of each division).

Types of StructuresListed below are some of the different structures of organizations:

Type A

Pyramid hierarchy

Matrix

Silos

Hub and Spoke

Type B

functional structures

non-functional structures

Challenges with StructuralListed below are some of the key challenges emerging from or facing the structure:

Culture of the organization

Functional silos

Imbalanced power

Power struggles

Lack of coordination

Lack of integration

Lack of motivation

ArtefactsListed below are some of the key artefacts of the structuire of an organization:

Sometimes
the structure dominates the culture and sometimes the culture dominates the
structure. Ideally, both culture and structure should be managed
holistically.

There is
a well known quote from Peter Drucker that says “Culture eats strategy for
breakfast”. What this means is that some of the best O&M plans can be
defeated if the organization is not ready to adopt the plan. It is a waste of
time to attempt to force a plan onto an organization if the organization has
strong cultural values that are at odds with the plan.

The
O&M team needs to understand the difference between the structure and
culture as these aspects of the organization can have a major influence on success
or failure.

There are ptions for making changes to structures and
cultures of an organization and reveal how O&M strategy should always invite culture to sit
down for breakfast.

Fig.
Clearly defined roles, responsibilities and authorities are one of the
signs of good leadership. In accordance with ISO 55000, these must be
coupled with appropriate structures and relationships to establish the
asset management system (AMS) within the organization.

Fig. Top management establishes the structure of the organization.

Fig.
As we dig deeper into ISO 55001 we find the rich fabric of concepts
woven into the seven chapters. This is where the nuances and
complexities of asset management start to reveal themselves.

Fig.
The relationship between Asset Management (AM) and the Asset
Management System (AMS) within the organization is not always clearly
articulated.

Fig.
Functional silos will defeat the organization. Instead:
integration, collaboration and alignment are some of the critical
success factors.